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Arunachal Approves 50 per cent SGST Reimbursement

2025-04-07

The Arunachal Pradesh Cabinet, led by Chief Minister Pema Khandu, has approved a 50 per cent reimbursement of State Goods and Services Tax (SGST) for the 1,200 MW Kalai II Hydro Electric Project to encourage investment and speed up hydropower development.

The project, located on the Lohit River in Anjaw district, is being developed by THDC India Ltd in collaboration with the Arunachal government and involves an estimated Rs 140 bn investment. It is projected to generate Rs 3.18 bn annually in free power and contribute Rs 22 mn per year to the Local Area Development Fund, benefiting nearby communities.

Additionally, the project is set to create around 1,700 direct jobs, prioritising local employment. The tax relief is part of a broader push to strengthen renewable energy infrastructure and enhance economic development in Arunachal Pradesh.

Alongside this decision, the Cabinet expanded social welfare schemes, including the Chief Minister’s Bal Seva Scheme (CMBSS) and the Chief Minister’s Social Security Scheme (CMSSS), allocating Rs 185 mn annually to benefit over 50,000 people, supporting education and social security.